Why WB is helping Isles achieve PPP goal

A poor road infrastructure. Through the PPP, it is easier to work out required solutions. (File photo)

WORLD Bank’s experts on ‘Public Private Partnership PPP’ have been engaged in capacity building of the local staff, stakeholders, and setting up a workable framework.

The PPP specialists from the World Bank include Mr Ned White, Mr John Buttarazi, and others have now made a close link with Zanzibar authorities, in making sure that the implementation of the partnership succeeds.

Like in many other countries promoting public private partnership, Zanzibar has this year shown commitment to work with private sector by establishing and strengthening PPP department in the Ministry of Finance.

Head of the PPP department Dr Kombo Khamis Hassan says “We are committed and we need the key players in the partnership: government officials and members of the private sector to understand the importance of joint venturing.”

Dr Hassan said that his department has been working with the World Bank specialists and other experienced persons to make sure that his staff understand thoroughly how PPP works and it benefits to the parties.He said that PPP is gaining ground globally as a solution to challenges in improving infrastructures like roads, airports, and utilities a demand from citizens, tourists, and investors.

Dr Hassan said PPP needs “Political will, availability of good policies, enabling environment, technical capacity, and openness & transparency” and Zanzibar is on good track to have the requirements in place.

In one of the meetings with stakeholders of partnership in Zanzibar, Mr Ned White defined PPP as a form of legally enforceable contract between the public sector and private sector.

Mr White said PPP requires new investments by the private contractor (money, or technology, or expertise/time, or reputation, etc.), which transfers key risks to the private sector (design, construction, operation, etc.), in which payments are made in exchange for performance, for the purpose of delivering a service traditionally provided by the public sector.

He informed participants of the meetings including officers from ‘government PPP department’, construction companies, Chamber of Commerce, and other private companies based in Zanzibar that there is no universally accepted definition of PPPs nor has the World Bank Group adapted an explicit definition.

PPPs may also refer to informal and short-term engagements of nongovernmental organizations, the private sector and/or government agencies that join forces for a shared objective; to more formal, but still short-term private sector engagements for the provision of specific services.

He said they have been working on behalf of the World Bank to help Zanzibar establish an effective PPP by having good policies and that at the initial stage of the work which may take sometime, authorities have shown interest.

The expert said that other countries are moving on well and some like Kenya and Uganda in the East African region are already now implementing PPP.

“And in Tanzania mainland partnership can be seen in Telecommunication (leading with many companies investing in mobiles phones), Energy, Transport, cleaning services, and Water and sewerage being the lowest.

He said in Africa many countries like Mauritius, South Africa, Botswana, and Kenya have been progressing well in PPP program, and that the construction of the building for SADC headquarters in Botswana was built under PPP.

Mr Buttarazi another expert from the World Bank says Public-Private Partnerships, if implemented well, can help overcome inadequate infrastructure that constrains economic growth, particularly in developing countries like Zanzibar and Tanzania mainland.

He said that poor infrastructure is often a reflection of constraints that governments face, for example, lack of public funds, poor planning, or weak analysis underpinning project preparation. He said that Government are measured by what they deliver, and that in most cases there constraints in delivering to the satisfaction of the people, but PPPs can help overcome these constraints by mobilizing private sector finance and helping improve project preparation, implementation, and management.

Mr Buttarazi, the partnership expert said that PPP is important in filling structural budget gaps, crumbling infrastructure, countering terrorism, addressing opposition to new taxes and debits, protecting the environment, and improving access to knowledge.

He said other sound reasons for PPPs are improved Quality of Service & Cost Competitiveness (higher quality of servicesi. e. reliability) & lower per unit costs; and better Value for the Public’s Money (VfM).

He said the team of experts from the World Bank working in Zanzibar sees that authority in the Islands has started well in building up PPP by having good framework & Priorities for the PPP Unit. The legal basis for PPP in Zanzibar “THE CONCESSION PROJECTS ACT, 2015” is already in place.

The law was a result of amending the ‘concession projects Act, 1999’, ‘the public procurement and disposal of public assets Act-2005’, ‘Zanzibar Investment Promotion and Protection Act-2004’, and ‘planning commission Act No 3 of 2012.’ According to the experts Zanzibar is now working on PPP Policy - Guiding Principles that will lead to projects that are: Value for Money, Public Interest, Transparency and Access to Information.

The Principles will also lead to Accountability, Competition, Benefit-Risk Allocation, Results Oriented (output vs input), Public Sector Financial Commitment, Budget for financial viability of project, Environmental Protection, and Corporate Social Responsibility.

Many people stakeholders including local companies have responded positively to the PPP program saying it is an opportunity for them to develop since they will contracted to do most of the work at home. But Mr Hassan Juma from a construction farm says most of the local companies lack skills, resources, and equipment to undertake big projects and “we need support to develop because PPP cannot work with weak companies.”

The World Bank says that the use of PPPs has increased in the last two decades, and now used in more than 134 developing countries, contributing to about 15–20 per cent of total infrastructure investment.

During the last 10 years, World Bank support to PPPs has increased because if implemented well, can help overcome inadequate infrastructure that constrains economic growth.



The Bank is positioned to help overcome these constraints by mobilising private sector participation, helping improve the enabling environment for investment, and strengthening project preparation, execution, and management.

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